Strategists Play Rupee via Singapore Dollar as Economies Diverge

Morgan Stanley recommends going short the Singapore dollar against the rupee as among its top trades for 2017. Scotiabank anticipates a return of more than 5 percent by buying the rupee versus an equally-weighted basket of the Singapore and Taiwan dollars, shows note dated Dec. 20 Goldman Sachs advises buying an equally-weighted basket of the Brazilian real, Russian ruble, Indian rupee and the South African rand, versus selling an equally-weighted basket of Korean won and Singapore dollar as one of its top trades. SEB recommends buying 12-month offshore rupee forwards using Singapore dollar forwards with a 0.0218 target, with spot reference of 0.0210.